Bitcoin price analysis: BTC breaks $39,200, spikes lower again

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD spiked to $38,600 overnight.
• Reaction higher seen over the past hours.

Bitcoin price analysis is bearish today as we expect further downside to follow after a strong spike lower and a quick reaction higher since midnight. Likely BTC/USD will move to est even further downside as selling pressure is still strong.

The market has declined substantially over the last 24 hours. The leader, Bitcoin, trades at a 2.78 percent loss, while Ethereum has a more substantial 4.96 percent loss. The rest of the top altcoins follow with similar results.

Bitcoin price movement in the last 24 hours: Bitcoin drops to test further downside

BTC/USD traded in a range of $38,696.19 to $40,484.17, indicating strong volatility over the last 24 hours. Trading volume has spiked by 71.65 percent, totaling $29.18 billion, while the total market cap trades at $746.47 billion, resulting in a dominance of 40.87 percent.

BTC/USD 4-hour chart: BTC reacts higher

On the 4-hour chart, we can see the Bitcoin price briefly testing the upside as sellers take a pause before further attempting to push the market lower.

Bitcoin price action saw consolidation during the second half of last week. New low was set at $39,200 on the 11 April, with the following retracement pushing to $41,500.

Further in the week, both higher local low and lower local high were set, indicating consolidation. Recovery did not follow, leading to more selling returning by the end of the weekend.

Right after midnight, the Bitcoin price action reached a new low at $38,600. Quick reaction higher quickly followed to $39,500 and was met with strong rejection. Therefore, selling should soon return, leading BTC/USD even lower over the next days.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we have seen another strong spike lower and a slight reaction higher since yesterday. Likely BTC/USD is now ready to continue even lower and look to test the $38,000 mark next.

While waiting for Bitcoin to move further, see our articles on Web3 Startups, How to buy Terra, and How to stake Algorand.